PERA COST-OF-LIVING ADJUSTMENTS

SB 52 (PERA Cost-of-Living Adjustments) changes how cost-of-living adjustments (COLAs) are calculated for New Mexico public retirement pension recipients. It requires that starting July 1, 2027, pension increases equal the Social Security and Supplemental Security Income (SSI) COLA rate determined by the federal government each year, instead of the previous method. This directly affects retirees who meet specific duration requirements (e.g., retired for 2 years, or age 65+ for 1 year), as well as survivor beneficiaries. The bill appropriates $50 million from the general fund for fiscal year 2027 to fund these adjustments, with unspent funds carrying forward to future years.